Correlation Between Fidelity Sustainability and WisdomTree Global

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Can any of the company-specific risk be diversified away by investing in both Fidelity Sustainability and WisdomTree Global at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Fidelity Sustainability and WisdomTree Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Sustainability Equity and WisdomTree Global Defense, you can compare the effects of market volatilities on Fidelity Sustainability and WisdomTree Global and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Fidelity Sustainability with a short position of WisdomTree Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sustainability and WisdomTree Global.

Diversification Opportunities for Fidelity Sustainability and WisdomTree Global

-0.71
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Fidelity and WisdomTree is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sustainability Equity and WisdomTree Global Defense in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Global Defense and Fidelity Sustainability is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Fidelity Sustainability Equity are associated (or correlated) with WisdomTree Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Global Defense has no effect on the direction of Fidelity Sustainability i.e., Fidelity Sustainability and WisdomTree Global go up and down completely randomly.

Pair Corralation between Fidelity Sustainability and WisdomTree Global

If you would invest  2,910  in WisdomTree Global Defense on September 28, 2025 and sell it today you would earn a total of  173.00  from holding WisdomTree Global Defense or generate 5.95% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy5.0%
ValuesDaily Returns

Fidelity Sustainability Equity  vs.  WisdomTree Global Defense

 Performance 
       Timeline  
Fidelity Sustainability 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Over the last 90 days Fidelity Sustainability Equity has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Fidelity Sustainability is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
WisdomTree Global Defense 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days WisdomTree Global Defense has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, WisdomTree Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Fidelity Sustainability and WisdomTree Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fidelity Sustainability and WisdomTree Global

The main advantage of trading using opposite Fidelity Sustainability and WisdomTree Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sustainability position performs unexpectedly, WisdomTree Global can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in WisdomTree Global will offset losses from the drop in WisdomTree Global's long position.
The idea behind Fidelity Sustainability Equity and WisdomTree Global Defense pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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